IGL.NS
Indraprastha Gas Ltd
Price:  
214.13 
INR
Volume:  
11,384,244.00
India | Gas Utilities
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IGL.NS WACC - Weighted Average Cost of Capital

The WACC of Indraprastha Gas Ltd (IGL.NS) is 14.6%.

The Cost of Equity of Indraprastha Gas Ltd (IGL.NS) is 14.70%.
The Cost of Debt of Indraprastha Gas Ltd (IGL.NS) is 5.75%.

Range Selected
Cost of equity 13.20% - 16.20% 14.70%
Tax rate 21.80% - 22.30% 22.05%
Cost of debt 4.00% - 7.50% 5.75%
WACC 13.1% - 16.1% 14.6%
WACC

IGL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.76 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.20% 16.20%
Tax rate 21.80% 22.30%
Debt/Equity ratio 0 0
Cost of debt 4.00% 7.50%
After-tax WACC 13.1% 16.1%
Selected WACC 14.6%

IGL.NS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for IGL.NS:

cost_of_equity (14.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.